0850 GMT - Hong Kong's Hang Seng Index could have room to run after getting a lift from news that China and the U.S. will lower tariffs. That eases concerns over corporate profits and trade uncertainty, as China's latest stimulus is starting to take effect, says Dilin Wu at Pepperstone. The stimulus aims to boost demand and financing efficiency, reducing reliance on external drivers, Wu says. The next catalysts will be quarterly earnings from Tencent and Alibaba. If results and guidance beat expectations, that could propel the HSI higher, Wu says. Also in focus is a ruling on AI chip-export controls. If Trump scraps curbs as expected and introduces a more streamlined regime, that could be a tailwind for the tech sector, Wu adds. The index finished 3.0% higher. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
May 12, 2025 04:50 ET (08:50 GMT)
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